NEW YORK (Reuters) - Shares of Eastman Kodak Co EK.N fell nearly 11 percent in early trading on Tuesday after news that a patent judge ruled in favor of Apple Inc (AAPL.O) and BlackBerry maker Research In Motion Ltd RIM.TO in a patent infringement dispute.
A U.S. International Trade Commission judge issued an initial determination that Kodak’s patent claim against both companies is invalid, Kodak said on Monday [ID:nN24144670].
The final decision by the full commission is expected by May 23.
“While this decision is not final, we think it reduces Kodak’s negotiating leverage and adds significant risk to those investors who expect continued IP settlements,” said Shannon Cross an analyst with Cross Research.
Kodak had said it expected to receive intellectual property licensing revenue of around $250 million to $350 million.
Cross Research lowered Kodak’s share price target to $3.50 based on a valuation at 3 times 2011 EBITDA (earnings before interest, taxes, depreciation and amortization).
Shares in Kodak fell 57 cents to $4.65 on Nasdaq in morning trade.
Kodak is scheduled to report its quarterly results on Wednesday before market opens.
Reporting by Yinka Adegoke, editing by Dave Zimmerman